Here's a powerful concept which only a small percentage of real estate investors practice, though will multiply your money making options, and allow you to buy and sell property for no money down. The concept? Assigning your real estate contract to other investors.

Truth is, it sounds harder and more confusing than it is. Let’s say you come across an excellent deal on a property. You agreed to purchase the property for $50,000 from a homeowner. After studying the value of other properties in the area, you know that this property can easily sell for $110,000 after all repairs are completed. So what you do? Do you buy the property yourself, fix it, and wait to resell it one to three months later? There is another option: you can assign the contract to an investor for a finder’s fee.

Before you can decide which decision is best, you obviously need to become informed as to what assigning a contract entails. Referring to the sample sales contract on page 167 of my foreclosure course, this contract specifies the agreement I have with a particular homeowner to purchase his home.

The annotation #1 states, “And/Or Assigns” indicates that I may, if I choose, assign this contract to another investor for an assignment fee. The amount of the fee is entirely up to me, and is largely dependent on what the property will bear. I cannot stress enough how important “And/Or Assigns” is to a real estate investor. It gives you the choice and power to either keep the property for yourself or sell/assign the contract to another investor.

I never fail to include “And/Or Assigns” after my company name. Though I may be 100% sure that I will keep a property for myself, I still put that phrase on my contract. Why? You should be asking “Why not?”

By selling or assigning the contract to another investor, you can make a quick profit with NO MONEY DOWN! Don’t get me wrong, 99.9% of the properties I go under contract with I keep for myself. But there are times when I have so many properties coming in that just can’t handle them all. This is when I assign the contract to another.

Just to give you an idea of the profit potential involved, the last two properties I assigned to other investors, I profited $8,000 and $12,000 — and it required zero work! All I did was sign the contract with the homeowner, found an investor, signed an assignment agreement with the investor, and 30 days later I was $12,000 richer! Is that awesome or what?

This is the laziest way to make a fortune in distressed property! A number of individuals who have taken my course specialize only in Assigning Contracts to Investors. Why? Because the only work required is locating properties. There is no applying for financing, no making sure that all repairs are completed, and no finding buyers. Best of all, IT’S FAST. You will get paid when the investor/assignee actually purchases the property, and that usually takes 20-45 days.


For more details on this method and many more, pick up a copy of my easy-to-understand training manual for real estate investors.

 

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